Ann: Notice of Meeting and update to remuneration practices, page-14

Just in case if someone need clarification about this announcement and resolution 3 in particular. This announcement is not about issuing DB performance rights and hurdles associated with it as per se. That information was given for references only. Board does not need shareholders approval for issuing rights, its amount or hurdles. Resolution 3 is about how company will pay for those rights in case conditions are satisfied. Regardless of how you vote DB will get those performance rights. What is the difference? Right now according ASX rules, since DB is managing director, company can only pay his rights though two options: 1) Cash 2) Shares which must be purchased on-market (this one as they claim currently their preferred option). If shareholders will vote in favor of resolution 3 company will have third option - paying his rights by issuing brand sparkling new shares thereby diluting value of existing shares.
Personally, I think this 10% EPS CAGR is way too low and should be at least doubled. currently 10% EPS CAGR is about 2cps which translates to about $14mil. For comparison $600mil (they currently have in a bank) on term deposit at 5% will give you more than $20mil after tax. Could you imaging how much $600mil can generate if invested properly into a growing business?
Getting a bit back to Synlait’s exclusive supply rights dispute. I'm somewhat frustrated it's going to arbitration as it will consume time and resources. As I stated previously removing exclusive rights will benefit a2 and at some degree Synlait as well (I hope this will be the outcome). If arbitration will favor Synlait, it will be lose-lose situation. With Synlait keeping exclusive rights a2 won't be able to make production at MVM viable. Therefor a2 will have only one option - give 3 year termination notice. This is going to be huge risk for a2 as they would have to obtain new SAMR for MVM within this 3 years. And I'm sure as the result Synlait will lose it's biggest customer once it's done. So, as I said lose-lose, a2 will have to take huge risk, Synlait will lose big portion of income. I have a suspicion that Synlait is just trying to renegotiate agreement. In exchange for given up exclusive rights they might ask for better margin. This is what I would do.
Just my 2c.